Veolia Sells U.K. Water Business

By

Géraldine Amiel

June 28, 2012 6:21 a.m. ET

PARIS—France's Veolia Environnement SA said Thursday it has sold its U.K. regulated-water business for £1.24 billion ($1.93 billion), the first leg of a substantial disposal plan, with most of the proceeds going toward cutting its huge debt pile.

Paris-listed Veolia, the world's largest environmental utility by revenue, has sold the business to Rift Acquisitions Ltd., an entity formed by Prudential PLC's Infracapital Partners and Morgan Stanley Infrastructure Partners, a unit of Morgan Stanley. The sale, expected to be...